Issue - meetings

To consider a report of the Leader of the Council and Cabinet Member for Devolution.

The Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance (Councillor Tom McGee) submitted a report (copies of which had been circulated) detailing the annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2018/19.

RESOLVED - (1) That approval be given to the actual 2018/19 prudential and treasury indicators detailed in the report.

(2) That the annual treasury management report for 2018/19 be noted.

(3) That it be noted that no fundamental changes had been made during 2018/19 to the Treasury Management Policy Statement and Practices approved at the Council Meeting on 14 September 2017.

To consider a report of the Leader of the Council and Cabinet Member for Devolution.

The report seeks to inform the Cabinet on the operation and effectiveness of the Council's Treasury Management function for 2018/19.  Throughout 2018/19 the Council complied with its legislative and regulatory requirements.  The key actual prudential and treasury indicators detailing the impact of capital expenditure activities during the year, with comparators are found in the main body of the report. 

The Borough Treasurer confirms that borrowing was only undertaken for a capital purpose and the statutory borrowing limit (the authorised limit) was not breached.

This annual review report is a backward-looking review of the treasury management operation for the previous financial year and is the last report in the 2018/19 reporting cycle.

The Cabinet is asked to recommend that the Council Meeting:

•        Approve the actual 2018/19 prudential and treasury indicators in this report;

•        Note the annual treasury management report for 2018/19;

•        Note that changes have been made to the Council’s Treasury Management Policy Statement and Practices during 2018/19 to accommodate the requirements of the revised CIPFA Codes published in December 2017.

Officer contact: Lorna Soufian, 0161 474 4026, lorna.soufian@stockport.gov.uk

The Cabinet Member for Resources, Commissioning & Governance submitted a report (copies of which had been circulated) updating the Cabinet on the functioning of the Council’s Treasury Management functions for 2018/19. The report confirmed that during the period in question the Council had complied with its legislative and regulatory requirements and that borrowing had only been undertaken for a capital purpose and the statutory borrowing limit had n not been breached.

RESOLVED – That in relation to the Treasury Management Annual Report 2018/19 the Council Meeting is recommended to:-

·         approve the actual 2018/19 prudential and treasury indicators in this report;

·         note the annual treasury management report for 2018/19;

·         note that changes have been made to the Council’s Treasury Management Policy Statement and Practices during 2018/19 to accommodate the requirements of the revised CIPFA Codes published in December 2017.

To consider a report of the Borough Treasurer.

The purpose of this report is to update councillors on the operation and effectiveness of the Council's Treasury Management function for 2018/19. 

Throughout 2018/19 the Council complied with its legislative and regulatory requirements.  The key actual prudential and treasury indicators detailing the impact of capital expenditure activities during the year, with comparators are found in the main body of the report.  

The Borough Treasurer confirms that borrowing was only undertaken for a capital purpose and the statutory borrowing limit (the authorised limit) was not breached.

This annual review report is a backward-looking review of the treasury management operation for the previous financial year and is the last report in the 2018/19 reporting cycle.

In treasury management terms the 2018/19 financial year largely continued the challenging environment of previous years, with lasting low investment returns and counterparty risk remaining.

The Scrutiny Committee is invited to comment on the report.

Officer contact: Lorna Soufian, 0161 474 4026, lorna.soufian@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) providing an update on the functioning of the Council’s Treasury Management functions for 2018/19. The report confirmed that during the period in question the Council had complied with its legislative and regulatory requirements and that borrowing had only been undertaken for a capital purpose and the statutory borrowing limit had n not been breached.

The following comments were made/ issues raised:-

·           Comment was sought on the implications were for the Council’s borrowing in light of the removal of the cap on Housing Revenue Account (HRA) borrowing. In response it was stated that further analysis would be undertaken over the summer to determine the most sustainable financing arrangements to meet the Council’s ambitions. It was likely that HRA borrowing would be used to supplement General Fund borrowing, as there were risks to HRA borrowing from Right to Buy depleting assets. It was also commented that the Treasury were likely to review rules for local authorities borrowing for purely commercial purposes, particularly where invested out of area.

·           Comment was sought on the variance between the capital programme budget and expenditure. In response it was stated that the Council had a significant capital programme, but there had been some slippage due to external factors, such as the collapse of Carillion, that required the programme’s rephrasing.

·           It was queried whether it would be prudent to reduce the HRA CFR, regardless of legislative requirements. In response it was stated that this was a prudent approach, and the summer review would assess whether this was advisable.

RESOLVED – That the report be noted.